What is the reason for the sharp decline in tea exports in the first 8 months of 2023?

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The Import-Export Department (Ministry of Industry and Trade) cited statistics from the General Department of Customs, saying that tea exports in August 2023 reached 12.2 thousand tons, worth 22 million USD, down 4.3% in volume and 3.8% in value compared to August 2022. The average export price of tea in August 2023 reached 1,804.0 USD/ton, up 0.5% compared to August 2022.

Tea exports plummeted in the first 8 months of 2023

In the first 8 months of 2023, tea exports reached 70.9 thousand tons, worth 121.9 million USD, down 13.9% in volume and 16.6% in value compared to the same period in 2022. The average export price of tea reached 1,718.3 USD/ton, down 3.2% compared to the same period in 2022.

Tea exports to major markets such as Pakistan, Taiwan and Russia are still on a downward trend, as the economies of these countries are still facing many difficulties.

Pakistan's foreign currency shortage has left many of the country's importers unable to buy foreign currency to pay exporters.

According to the Vietnam Trade Office in Pakistan, Pakistan's customs agency stipulates that all imported shipments remaining in the port for more than 30 days will be put on the list of confiscated goods for auction.

Therefore, enterprises exporting goods in general and tea in particular from Vietnam to the Pakistani market need to pay attention to shipments that are delayed in payment, especially after 30 days from the time the goods arrive at Karachi port, and need to notify the Vietnam Trade Office in Pakistan for coordination in handling, to avoid incurring costs and fines from the port and shipping line and being confiscated and auctioned by the Pakistani customs authority.

For the Taiwanese market (China), according to the Taiwan Statistics Office, the economy of this market in 2023 may grow at its slowest pace in decades due to a downward trend in exports, in the context of high interest rates in the world to deal with inflation, and complicated developments in the US and China's economies.

In the Russian market, rising inflation and a weak ruble could prompt the Russian Central Bank to raise interest rates and tighten monetary policy to stem capital outflows. As a result, consumer demand in Russia is also limited.

Among the main export markets of Vietnamese tea in the first 8 months of the year, only 2 markets had double-digit export increases in volume. Specifically, Iraq increased by 48.7% and Saudi Arabia increased by 26.4% compared to the same period last year.

Vietnam's tea export market in the first 8 months of 2023